User Account

All Pages

Prepare in general journal format entry to record issuance

Assignment Help Accounting Basics
Reference no: EM132803425

Bonds with Detachable Warrants:

On July 1, 2019, Salem Corporation issued $3 million of 12% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $30, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3 million. The value of the warrants at the time of issuance was $200,000.

Required:

Problem 1: Prepare in general journal format the entry to record the issuance of the bonds.

Reference no: EM132803425

Questions Cloud

Calculate the diluted eps for zenith corporation : Calculate the Diluted EPS. Zenith Corporation had net income of $280,000 and paid no dividends during the year. Zenith had 80,000 shares of common stock.
Calculate the diluted eps for orion corporation : Calculate the Diluted EPS. Orion Corporation had net income (after tax) of $2,000,000 and paid dividends of $25,000 to preferred stockholders.
Calculate the basic eps for ryan company : Calculate the Basic EPS for Ryan Company. Ryan Company had net income of $400,000 for the year and paid no dividends. Ryan began the year with 100,000 shares
Calculate the earnings pershare of common stock : Calculate the earnings pershare of common stock. The Summer Coporation began the year with a simple capital structure consisting of 480,000 shares
Prepare in general journal format entry to record issuance : Prepare in general journal format the entry to record the issuance of the bonds. On July 1, 2019, Salem Corporation issued $3 million of 12% bonds
Identify the weaknesses of accounting information : Identify the weaknesses of accounting information from the financial managers' point of view and how would this affect the users?
What are the main objectives of the balance sheet : The report is structured so that the total of all assets equals the total of all liabilities and equity. What are the main objectives of the balance sheet?
What are the three types of endowments : Discuss here the type of endowments they currently have reported on their financial statements. Describe the nature and purpose of the endowment.
Record the journal entry for january : Record the journal entry for january 1, 2022, assuming the company's policy is to record forfeitures as incurred. Prepare the journal entry on March 1, 2023

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd